Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2021

Transfers and Servicing [Abstract]

Mortgage Servicing Rights

Mortgage Servicing Rights

(In Thousands)

Changes in the Company’s mortgage servicing rights (“MSRs”) were as follows, for the periods presented:

Carrying Value at January 1, 2020	$	53,208
Capitalization	41,235
Amortization	(19,723)
Valuation adjustment	(11,726)
Carrying Value at December 31, 2020	$	62,994
Capitalization	33,948
Amortization	(21,485)
Valuation adjustment	13,561
Carrying Value at December 31, 2021	$	89,018

The valuation adjustments reflected in the table above are included in “Mortgage banking income” in the Consolidated Statements of Income. The movement of mortgage interest rates has an inverse relationship with prepayment speeds and discount rates.

Data and key economic assumptions related to the Company’s mortgage servicing rights as of December 31 are as follows: 

	2021			2020			2019
Unpaid principal balance	$	8,728,629		$	7,322,671		$	4,871,155
Weighted-average prepayment speed (CPR)	10.56		%	15.05		%	11.48		%
Estimated impact of a 10% increase	$	(3,875)		$	(4,001)		$	(2,469)
Estimated impact of a 20% increase	(7,464)			(7,674)			(4,774)
Discount rate	9.82		%	9.86		%	9.69		%
Estimated impact of a 100bp increase	$	(4,153)		$	(2,144)		$	(2,027)
Estimated impact of a 200bp increase	(8,119)			(4,144)			(3,908)
Weighted-average coupon interest rate	3.29		%	3.58		%	4.04		%
Weighted-average servicing fee (basis points)	30.37			29.94			29.20
Weighted-average remaining maturity (in years)	6.69			5.14			6.35

The Company recorded servicing fees of $17,968, $12,628 and $9,491, for the twelve months ended December 31, 2021, 2020 and 2019, respectively. These fees are included under the line item “Mortgage banking income” in the Consolidated Statements of Income.